The current yield on a bond is equal to the annual interest


1- Which of the following statements is correct?

A-Short-term bonds have more price risk than long-term bonds.

B-High coupon rate bonds have more price risk than low coupon rate bonds.

C-Long-term bonds have more price risk than short-term bonds.

D-Low coupon rate bonds have less price risk than high coupon rate bonds.

2-The current yield on a bond is equal to the annual interest divided by which one of the following?

A-Issue price

B-Face amount

C-Current market price

D-Current par value

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Financial Management: The current yield on a bond is equal to the annual interest
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